Real-Time Co-optimization Task Force & Passport Update

Real-Time Co-optimization Task Force and Passport Update to PRS Matt Mereness RTCTF Chair November 11, 2020

Agenda Real-Time Co-optimization (RTC) Revision Requests Harmonizing RTC & Battery Energy Storage Next Steps for PRS Consideration today Appendix: RTC Scope RTCRR Review Process Updates to Telemetry From/To QSE in RTC TAC Direction on RR changes different from Key Principles Overall RTC/Passport Delivery Schedule 2 PUBLIC

Real-Time Co-optimization Revision Requests Based on Board-approved RTC Key Principles (KPs), ERCOT developed and released the following NPRRs, NOGRR, and OBDRR with a single Impact Analysis (IA). Pages 549 total RTCRRs released March 25, 2020 NPRR1007- RTC NP3- Management Activities for the ERCOT System 62 NPRR1008- RTC NP4- Day-Ahead Operations 65 NPRR1009- RTC NP5- Transmission Security Analysis and Reliability Unit Commitment 39 NPRR1010- RTC NP6- Adjustment Period and Real-Time Operations 248 NPRR1011- RTC NP8- Performance Monitoring 49 NPRR1012- RTC NP9- Settlement and Billing 15 NPRR1013- RTC NP 1, 2, 16, 25- Overview, Definitions/Acronyms, Registration and Qualification of MPs, and Market Suspension and Restart 24 NOGRR211- RTC Nodal Operating Guides 2 and 9- System Operations and Control Requirements and Monitoring Programs 21 OBDRR020- RTC - Methodology for Setting Maximum Shadow Prices for Network and Power Balance Constraints 26 3 PUBLIC

Harmonizing RTC & Battery Energy Storage (BES) RTCTF & BES Task Force (BESTF) meetings were purposefully adjacent or straddling PRS due to inter-relationships of RTC & BES concepts BESTF RTCTF March 11 April 8 April 30 May 20 June 10 June 29 July 22 August 12 September 9 September 28 October 21 November 12 (if needed) March 13 April 16 May 1 May 21 June 12 June 30 July 23 August 14 September 11 September 29 October 22 November 13 (if needed) November 5 (ROS) November 11 (PRS) November 18 (TAC) December 8 (Board of Directors) Requesting Urgency and PRS Vote for NPRRs at November 11, 2020 meeting (to meet 2024 Passport schedule) 4 PUBLIC

Harmonizing RTC & Battery Energy Storage RTC IA RTC KPs RTCTF Meetings RTC RRs PRS TAC BOD RTC Redline Changes RTC Redline Changes RTC Redline Changes Approval of RTC RRs and IA PRS: NPRR1007-1013 Single Model IA BESTF KTCs Single Model NPRR _____________ For overlapping sections, authors use RTC Redlines + ESR Redlines PRS TAC BESTF Meetings BOD Approval of Single Model NPRR & IA (acknowledging subset of identical RTC redlines to support ESR redlines). Other BES RRs PRS: NPRR1014 & 1029 5 PUBLIC

Next Steps for PRS Consideration today Requesting Urgency and Approval of the listed NPRRs recognizing: The RTCTF and BESTF work is complete on these items The Impact Analyses have not changed ERCOT is prepared to develop and deliver as part of its 2024 delivery of the Passport Program Items for PRS consideration today: NPRR1007: RTC NP3- Management Activities for the ERCOT System NPRR1008: RTC NP4- Day-Ahead Operations NPRR1009: RTC NP5- Transmission Security Analysis and RUC NPRR1010: RTC NP6- Adjustment Period and Real-Time Operations NPRR1011: RTC NP8- Performance Monitoring NPRR1012: RTC NP9- Settlement and Billing NPRR1013: RTC NP 1, 2, 16, 25- Overview, Definitions/Acronyms, Registration and Qualification of MPs, and Market Suspension and Restart NPRR1014: BESTF-4 Energy Storage Resource Single Model NPRR1029: BESTF-6 DC-Coupled Resources 6 PUBLIC

Appendix RTC Scope RTCRR Review Process Updates to Telemetry From/To QSE in RTC TAC Direction on RR changes different from Key Principles Overall RTC/Passport Delivery Schedule 7 PUBLIC

RTC Scope SCED will be expanded to clear Energy & AS every five minutes Hence real-time co-optimization , similar to Day-Ahead Market SCED will clear full capability of Resources QSEs no longer reserve AS Capacity from DAM awards (discontinue HASL/LASL) SCED essentially re-clears all AS in Real-Time Note there are some exceptions for Load Resources Therefore Supplemental AS Market no longer needed (SASM retired) RUC (like SCED) will co-optimize the full capability of Resources (no HASL/LASL) DAM will allow virtual AS Offers (offers only, no bids to buy) If a Resource that is qualified to provide AS does not offer AS in real-time, ERCOT systems will create Proxy Offers for services Open issue to consider Proxy AS Offer Prices (needed prior to go-live) Operating Reserve Demand Curve (ORDC) price adders will be discontinued in RTC, and reflected as RTC AS Demand Curves for each AS in SCED. Telemetry changes required from Resources Additional Ramp Rates Merging UDBP and Regulation into single UDSP 8 PUBLIC

ERCOT will file cumulative RTCRR comments reflecting when consensus on sections achieved. (Also tracked in summary spreadsheet) RTCRR Review Schedule and Process Resolved Items Tracked Tracked in Spreadsheet in Spreadsheet as Consensus Items as Complete 7-days prior #1 ERCOT posts agenda and RTCRRs sections to be reviewed 7-days prior #3 Non-consensus materials posted for options on language to be considered. 2-days prior #2 ERCOT responds to MP questions and redlines Complete Meeting #1 Meeting #2 Meeting #3 7-days prior #3 MPs must document concerns and alternative language prior to meeting, and be prepared to discuss. During meeting, MPs discuss any concerns or alternatives 7-days prior #2 MP redlines due and posted to address concerns or alternatives TAC will be updated monthly. If irresolvable issues occur at RTCTF, the RTCTF Chair can request TAC endorsement to resolve. PUBLIC 9 8

Updates to Telemetry From/To QSE in RTC (Updated 5/7/2020) Resource Specific From QSE Unit Related A/S Related High/Low Sustained Limits (HSL, LSL) AVR Status (AVR) FRRS Up/Down Participation Factor (FUPF, FDPF) Dynamically Scheduled Resource Schedule (DSRS)[Gen] Lower/Raise Block Status (LBST, RBST) [Gen] PSS Status (PSS) High/Low Emergency Limit (HEL, LEL) FRRS Up/Down Responsibility (FURS, FDRS) Energy (Normal) Up/Down Ramp Rate (NURR, NDRR) Emergency Up/Down Ramp Rates (EURR, EDRR) Regulation Up/Down Participation Factor (RUPF, RDPF) Regulation Up/Down Responsibility (RURS, RDRS) Responsive Reserve Responsibility/Schedule (RRRS, RRSC) High Set Under Frequency Relay (HSUF) [NCLR] Net MW/MVAR (MW (aka NPF for CCP), MVAR) POI kV Measurement/Target (KVM, KVT) Gross MW/MVAR (GMW, GMV) Scheduled Power Consumption (SPC, SPC2) [CLR] Storage Resource Charge/Discharge Data (MXCP, MXDP, MXOD, SOC) IRR MET Data (DEG, IRAD, MPH, PRES, PTMP, TEMP) IRR Turbine/Panel Availability (NTOF, NTON, NTUN) CCP Frequency Responsive Capacity High/Low Limit, Frequency Responsive MW Resource Status (RST) Non-Spin Responsibility/Schedule (NSRS, NSSC) CCP Config No (CCC) Regulation Up/Down Ramp Rate (based on 5-min blended) Non Frequency Responsive Capacity (NFRC) RRS PFR/FFR/UFR Capability Load Resource Breaker Status (LRCB) [NCLR] Non-Spin Ramp Rate (based on 30-min blended) Max/Low Power Consumption (MPC, LPC) [CLR, NCLR] ECRS Ramp Rate (based on 10-min blended) RRS/ECRS Self Provision (based on DAM Award and AS trades) [NCLR] ECRS Responsibility, Schedule Resource Specific To QSE QSE Specific To QSE A/S Related Regulation Up/Down MW (REGU, REDG) FRRS Up/Down MW (FURQ, FDRQ) Responsive Reserve Gen/ONRR/FFR Deployment (RR, ONRR, FFR) ECRS Deployment (Gen, ONRR) Unit Related A/S Related Base Point (BP) Non-Spin Deployed (NDPL) Locational Marginal Price (LMP) RRS Deployed (RDPL) [NCLR] Regulation Up Award, Regulation Down Award Curtailment (SBBH) Responsive Reserve Award SCCT Status (SCCT) ECRS Award, Non-Spin Award Regulation Up Deployment, Regulation Down Deployment Updated Desired SP (UDSP) Updated Desired BP (UDBP) *Base telemetry list in this table has been created using ERCOT Nodal ICCP Communications Handbook (note also included are some potential changes related to NPRR 863 Ph2 (reflected in green color). **RTC related changes that are identified in this list (reflected in red color) are based on KP1.3, 1.4, 1.5. 10 PUBLIC 10

TAC Direction on RR changes different from Key Principles (TAC Discussion May 27, 2020) Below are the following criteria to modify RTCRRs beyond the scope of the RTC KPs if a market design flaw or error was discovered following Board approval of the RTC KPs: A. The modification complies with PUC directives; B. The modification will not incur additional RTC project costs or schedule delays; and C. The modification will not delay timely implementation of RTCRRs (i.e., will not prevent the Board from considering the NPRR at the December 8, 2020 Board meeting). (Step-by-step process described on next slide) 11 PUBLIC 11

TAC Direction on RR changes different from Key Principles (TAC Discussion May 27, 2020) A Market Participant has the right to express concerns with a RTCRR. Any MP may file comments to modify a RTCRR beyond the scope of the Board-approved KPs. In comments to modify an RTCRR, the submitting party shall explain how the revisions meet the criteria proposed on the previous slide. RTCTF will provide: The technical forum (e.g., an extra off-cycle meeting) for discussion of the proposed RTCRR changes with the understanding that RTCTF consensus is not practical and will not occur. At TAC: RTCTF Chair will advise TAC leadership of any RTCRR Comments that propose to modify the scope of the KPs beyond that which was approved by the Board, and Request time for the MP to present to TAC for consideration, as well as another MP to present the counterpoints (if any) as to why the existing KP should continue to be maintained and aligned with RTCRRs. TAC may take a straw poll to endorse the proposed NPRR comments; the vote would not be binding and therefore non-appealable, but would classify the modified/added concept as valid. If TAC endorses the alternative, the RTCTF Chair would update the Board of the straw poll decision. The RTCRR comments would subsequently be considered at PRS, TAC, and ultimately the ERCOT Board as consistent with Protocols Section 21 process. 12 PUBLIC 12

Overall RTC/Passport Delivery Schedule Draft Timeline There are RTC several items/policies, beyond 2020 RTCRRs, that must be addressed prior to the implementation of RTC e.g.: Proxy Offer Curves; RUC AS Demand Curves; Transitional language for RTC go-live (if any); ORDC/RTC results comparison; and Target dates for MP detailed requirements (e.g., SCADA changes, XML changes, Market Trials plans). 13 PUBLIC